President Nyusi Makes Official State Visit to Equatorial Guinea, Discusses Gas Monetization and Mozambique Gas Project

Significant natural gas resources and large-scale development have positioned Mozambique as a very attractive gas market. Despite project delays in 2021, the country is more committed than ever to see projects resume, new developments kick in and the domestic market secures further investment in 2022 and beyond. During an official state visit to Equatorial Guinea, HE Filipe Jacinto Nyusi, President of the Republic of Mozambique, decided to spend a day discussing liquefied natural gas (LNG) and gas monetization, making an official visit to the Equatorial Guinea LNG (EG LNG) project in Punta Europa led by HE Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, Equatorial Guinea.

During the visit to EG LNG, HE President Nyusi held bilateral talks with HE Minister Lima, discussing how LNG infrastructure works and how this infrastructure can promote socio-economic growth by generating important revenues for the host country. By touring the project, HE President Nyusi gained first-class insight into what an LNG plant can do for a country and what the government can do to support projects like this. For Mozambique, the visit marks an important step for the country’s energy sector, with the President gaining knowledge and insight from one of Africa’s biggest natural gas players. For Equatorial Guinea, new opportunities for regional collaboration have emerged, and with Mozambique set to experience unprecedented market growth, future partnerships will play an important role in strengthening the African domestic market as a whole.

“Equatorial Guinea’s development is a great example of what LNG and gas monetization projects can do for Africa. It’s great to see HE President Nyusi in Equatorial Guinea. The visit will provide the President with key ideas and examples of what the government can do to promote gas monetization. Mozambique will see a similar large-scale LNG project that will boost the African gas market and position the continent as a globally competitive energy sector,” said NJ Ayuk, Executive Chair of the African Energy Chamber (AEC).

As the AEC stated in its Q1 2022 report, the growth of the Mozambique gas market in 2022 and beyond will be a game changer for the African hydrocarbon market and will help steer the continent on a trajectory towards a global energy hub. It is for this reason that HE Nyusi is committed to seeing the project proceed. At a time when gas production across Africa needs to be increased to meet growing demand both regionally and internationally, Mozambique projects will play an important role in ensuring energy security. With over 100 trillion cubic feet of gas reserves, this south African country is well positioned to be the supplier of choice for Europe and Africa and large-scale projects are proof of that.

Coral FLNG, for example, which consists of about 450 billion cubic meters of gas in the Coral South Field in Area 4 in the Rovuma Basin off the coast of Mozambique, will enable the southern African nation to produce 3.4 million tonnes per year (mtpa) of gas for exported to Europe and Asia by 2022. In addition, TotalEnergies’ 12.8 mtpa LNG project and Eni and ExxonMobil’s 15.2 mtpa LNG Rovuma projects have the potential to transform the regional gas market, positioning Mozambique as a highly competitive gas exporter. Although both projects have been delayed, progress is being made to get these developments back on track.

“Mozambique has the potential to transform Africa’s energy space while emerging as the supplier of choice for international markets. Getting the nation’s gas projects back on track is a top priority, and during African Energy Week (AEW) in Cape Town, discussions will be centered around this narrative,” said NJ Ayuk, Executive Chair at AEC.

Representing the voice of Africa’s energy sector, the AEC is committed to realizing Mozambique’s gas future. Recently, the AEC delegation led by Ayuk traveled to Mozambique, met with HE Carlos Zacarias, Minister of Mineral Resources and Energy, and Empresa Nacional de Hidrocarbonetos (ENH) to discuss gas monetization and create a history of energy poverty through gas. The AEC is considering drafting various collaborative agreements to be signed between Mozambique and various African countries during African Energy Week (AEW), centered around capacity building, driving investment and ensuring growth.

Equatorial Guinea represents an ideal and important partner for Mozambique in its efforts to revive its gas market. The European Punta LNG development itself is considered one of the most important gas developments in Africa. The 3.7 million tonnes per year LNG terminal processes not only domestic gas resources but regional reserves, serves as the top LNG processing facility in Africa and ensures African resources are used in Africa. Therefore, as a partner, Equatorial Guinea will play an important role in helping Mozambique realize the full potential of its gas market.

“One of the key aspects of the EG LNG project is collaboration, with international oil companies (IOCs) having the opportunity to work with nationals to increase local content, leading to more local companies and people working at the LNG plant. This should be the main driver and initiative to be adopted in Mozambique, the partnership between the IOC and citizens, as it will create jobs and opportunities that will ensure sustainable socio-economic growth. Equatorial Guinea is very effective in terms of regional cooperation. By working with other regional players including Nigeria, Cameroon and now Mozambique, the country is driving growth on a continental scale. MEA encourages more partnerships like these and engagements that drive LNG dialogue, LNG implementation, and LNG development. Gas will change the way we think and do business in Africa, as well as our ability to fight climate change. Gas is a way to fight climate change,” Ayuk concluded.

Discussions held between HE President Nyusi and HE Minister Lima on the role of African gas in Africa will be expanded during the continent’s premier energy event, AEW 2022, which takes place in Cape Town from 18-21 October.

Distributed by APO Group on behalf of African Energy Week (AEW).

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About AEW:
AEW 2022 is AEC’s annual conference, exhibition and networking event. AEW 2022 brings together African energy stakeholders with international investors and partners to drive industrial growth and development and promote Africa as an energy investment destination. Key organizations such as the Organization of African Petroleum Producers, as well as African heavyweights including Equatorial Guinea and Nigeria, have partnered with AEW, strengthening the role the event will play in Africa’s energy future.

This Press Release has been issued by APO. Content is not monitored by the Business Africa editorial team and is not content that has been vetted or validated by our editorial team, evidence readers or fact checkers. The publisher is fully responsible for the contents of this announcement.

President Nyusi Makes Official State Visit to Equatorial Guinea, Discusses Gas Monetization and Mozambique Gas Project

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